There is no justice for the big record labels. Apple (NASDAQ:AAPL) dominates the music download business and pays the music publishers a modest fee. Since Apple controls most of the digital music business, what can the publishers do?
Universal Music has proposed creating a project called Total Music which would pull together the big music publishers including Sony BMG and Warner Music (NYSE:WMG). The Justice Department has decided to look into that. Perhaps it thinks of the new project as a monopoly.
According to The Wall Street Journal, "Universal and Sony BMG Music Entertainment, the No. 1 and No. 2 music companies world-wide by market share, have gotten letters of inquiry from the Justice Department."
It is an example of where the law is perverse and justice is not served. Apple has a de facto lock on the digital music industry and can set prices almost at will. No one sees the Justice Department going after the company.
Douglas A. McIntyre is an editor at 247wallst.com.
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